FTX Payouts Calculated by K33 Analysts: How Much Will Flow Back Into the Crypto Market?
The approval of FTX’s repayment plan by the US bankruptcy court has sparked excitement among crypto investors. With expectations high for cash payouts, K33 analysts estimate that around $2.4 billion could re-enter the crypto market.
After years of anticipation, the official decision on FTX repayments was finalized last night. As predicted, despite numerous objections, it was determined that users will be paid in cash based on their account values, regardless of the cryptocurrencies held at the time of bankruptcy.
When Will Payments Begin?
K33 Research, a crypto research firm that has previously issued reports on FTX payments, provided key insights into the expected timeline. According to the company’s latest report, released on Tuesday, payments are anticipated to be distributed by the end of this quarter and into the first quarter of 2025.
"Creditors with individual claims under $50,000 will receive payments within a 60-day window," the report stated. K33 estimates this will amount to approximately $1.2 billion. Larger creditor claims, which total around $9 billion, are projected to be paid by February 2025.
Will All the Money Flow Back Into the Crypto Market?
A pressing question for many is how much of these payouts will return to the crypto market—if any at all. K33 analysts crunched the numbers on this topic.
They revealed that around $3.9 billion of the claims, out of a total of $14.4 billion to $16.3 billion, had been acquired by loan funds. According to the analysts, it’s unlikely that this portion of the funds will be converted back into cryptocurrencies.
While expectations are high, only a fraction of the overall amount is expected to find its way back into the crypto ecosystem.
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